Raise the deductible on your homeowner's insurance. An insurance deductible is the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, (according to the terms of your policy). It is important to understand that the higher your deductible, the more money you can save on your premiums. Typically, most insurance companies recommend a deductible of at least $500. Yet you should understand that if you can afford to raise your deductible to $1,000, you can save as much as 25 percent. In addition if you live in a disaster-prone area, your insurance policy may have a separate deductible for certain kinds of damage.

Understand the difference between what you paid for your house and the rebuilding costs. Insurers should understand that the land under your house is not at risk from theft, windstorm, fire and the other perils that are covered in your homeowner's policy. So you should not include its value in deciding how much homeowners insurance to buy. If you do include the cost of the land you will pay a much higher premium than you should.

Always buy your home and auto policies from the same insurer. Most companies that sell homeowners, auto and liability coverage will take anywhere between 5 to 15 percent off your premium if you buy two or more policies from them. Always make certain however that this combined price is lower than buying the different coverage's from different companies.

Work on making your home more disaster resistant. In order to save money you should find out from your insurance agent or company representative what steps you can take to make your home more resistant to windstorms and other natural disasters. You can also save on your premiums by adding storm shutters, reinforcing your roof or buying stronger roofing materials. Older homes may need to be retrofitted to make them better able to withstand earthquakes. In addition, you may want to consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage.

Improve your home security. You may be able to get discounts of at least 5 percent for a smoke detector, burglar alarm or dead-bolt locks. Some companies may also offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. Keep in mind that these systems are not cheap and not every system qualifies for a discount. Before you commit to a large expense be sure to find out what kind your insurer recommends, how much the device will cost and how much you will save on premiums.

Actively seek out other discounts. Most insurance companies will offer several types of discounts, but they do not all offer the same discount or the same amount of discount in all states. Be sure to ask about any discount you can qualify for. In addition it can pay to check at work since some employers and professional associations administer group insurance programs that may offer a better deal than you can get elsewhere.

Always maintain a good credit record. In today's volatile financial world establishing a solid credit history can drastically cut your insurance costs. Insurers are increasingly using credit information in order to price homeowner's insurance policies. In most states, your insurer must advise you of any negative action, such as a higher rate, at which time you can verify the accuracy of the information on which the insurer relied. In order to protect your credit standing, pay your bills on time, do not obtain more credit than you need and keep your credit balances as low as possible. In addition be sure to check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

Try to stay with the same insurer. If you have been able to keep your coverage with a company for several years, you may be able to receive a special discount for being a long-term policyholder. Some insurers may even reduce their premiums by 5 percent if you stay with them for three to five years and by 10 percent if you remain a policyholder for six years or more. You should always make certain to periodically compare this price with that of other policies.

Be sure to review the limits in your policy and the value of your possessions at least once a year. You will want your policy to cover any major purchases or additions to your home. But it is equally important that you do not spend money for coverage you do not need. Keep in mind that if your insured item is no longer worth what you paid for it, you will want to reduce or cancel your floater (extra insurance for items whose full value is not covered by standard homeowner's policies) and pocket the difference.

Be sure to look for private insurance if you are in a government plan. If you do live in a high-risk area(vulnerable to coastal storms, fires, or crime)and have been buying your homeowners insurance through a government plan, insurance experts advise that you should check with an insurance agent or company representative or contact your state department of insurance for the names of companies that might be interested in your business. You may find that there are steps you can take that will allow you to buy insurance at a much lower price in the private market.

Before you buy your home be sure to consider the cost of homeowners insurance. It is important to know that you may pay less for insurance if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department. It can also be cheaper to get insurance if your home's electrical, heating and plumbing systems are less than 10 years old. If you are living in the East, you may want to consider a brick home because it's more wind resistant. If you live in an earthquake-prone area, you should look for a wooden frame house because it is more likely to withstand this type of disaster. By choosing your home wisely you could cut your premiums by 5 to 15 percent. In addition you should check the CLUE (Comprehensive Loss Underwriting Exchange) report of the home you are thinking of buying. This report will contain the insurance claim history of the property and can help you judge some of the problems the house may have. You should also understand that if you buy a house where property values are not overpriced you can not only save money on insurance but you will also save money on the cost of your home, as well. Your insurance will cost less because the cost to insure most property depends on how much the property is actually worth.